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Daily Base Metals Report

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European stock indices declined again today, as investors still remain nervous about the economic impact of the second wave of COVID-19. Economic data has held up relatively well and with governments reluctant to enforce nationwide lockdowns again. The UK Chancellor has released new a Job Support Scheme which will replace the furlough scheme in November, cable consolidated recent losses and is marginally higher on the day trading at 1.2743. In the US, stock markets have gained ground, but the market has been volatile. Steven Munchin has suggested that he plans to resume negotiations with Nancy Pelosi for the pandemic relief package. 

Metals prices were weaker again, Tin lost the most ground after failing above $17,700/t to close at $17,281/t. Selling pressure caused copper to test appetite around $6,450/t but manage to close back above $6,500/t at $6,523.5/t. Lead prices found support below $1850/t and closed at $1,856/t, the cash to 3-month spread has tightened into -23.25/t contango. Aluminium broke through support at $1,750/t and closed at $1,740/t, as inventory levels continue to fall from the recent highs. Nickel and zinc closed on the back foot as well at $14,262/t and $2,370/t respectively. 

Oil prices are marginally softer as the stronger dollar continues to provide headwinds, Brent and WTI trade at $39.85/bl and $41.56/bl respectively. Gold and silver found support after Steve Munchin's statement about the pandemic relief package. 


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